Under the proposed asset purchase ("Asset Purchase"), the company would acquire all of Ciprico's rights to the RAIDCore technology. In addition, the company would acquire a joint ownership interest with Ciprico in the NAS intellectual property.

The company is also negotiating to provide Ciprico with a debtor-in-possession ("DIP") loan ("DIP Loan") in an amount not to exceed $225,000. The terms of the DIP Loan would provide Dot Hill with a first priority security interest in all of Ciprico's assets.

The proposed Asset Purchase and DIP Loan remain subject to Bankruptcy Court approval. Ciprico has filed motions seeking authority pursuant to Section 363 of the Bankruptcy Code to approve the proposed Asset Purchase pursuant to certain proposed sale procedures, and separately a motion to approve the DIP Loan from the company.